Get the wheelbarrows ready. One U.S. Dollar now equals more than 8,700 Venezuelan Bolivars on the black-market.
As Venezuela’s socialist regime continues ever-tighter restrictions on their already collapsed economy, and as political instability pushes the country towards anarchy, the Venezuelan Bolivar has collapsed to a rate of 8,790.84 per USD on the black-market.
In a sign of how the socialist government tries to manipulate information, they are still claiming that the official exchange rate is just 10 Bolivars per USD. While some use an alternate rate of 2,757 Bolivars per USD, the most realistic and manipulation-free rate is what prevails on the black market.
As noted by Bloomberg, “That’s creating an illusion for foreigners observing the country’s stock market, which appears to be valued at $2.57 trillion — bigger than Germany’s, France’s, India’s or Canada’s — but is worth only $3 billion based on the black-market rate.”
To get a true sense of how rapidly the currency is collapsing, take a look at the chart below:
This what happens when central planning takes over an entire economy. Let this be a lesson to any foolish politician or organization who thinks they are somehow brilliant enough to centrally manage the millions of second-to-second transactions that occur in a complex economy.